The Adaptation Fund was established to finance concrete adaptation projects and programmes in developing countries that are parties to the Kyoto Protocol and are particularly vulnerable to the adverse effects of climate change. Since 2010, the fund has dedicated more than US$ 331 million to increase climate resilience in 54 countries around the world.
The Adaptation Fund is supervised and managed by the Adaptation Fund Board (AFB). The Board is composed of 16 members and 16 alternates and holds periodic meetings throughout the year. The Global Environment Facility (GEF) provides secretariat services to the AFB and the World Bank serves as trustee of the Adaptation Fund, both on an interim basis.
Under the Clean Development Mechanism (CDM), emission-reduction projects in developing countries can earn certified emission reduction (CER) credits. These credits can be traded and sold by industrialized countries to meet a part of their emission reduction targets under the Kyoto Protocol. Financing for the Adaptation Fund comes mainly from sales of certified emission reductions. The share of proceeds amounts to 2 percent of the value of CERs issued each year for CDM projects. The fund also receives contributions from governments, the private sector, and individuals.